Taxable GO Bond Sale_Series 2012F_$1.05MMasterpiece on the Mississippi
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Dubuque
kital
All- America City
II 111!
2012
$3,695,000 General Obligation Bonds, Series 2012E
$1,050,000 Taxable General Obligation, Series 2012F
$2,420,000 General Obligation Urban Renewal Bonds, Series 2012H
$7,034,000 Taxable General Obligation Refunding Bonds, Series 20121
DATE: October 30, 2012
The sale of $3,695,000 General Obligation Bonds, Series 2012E; $1,050,000 Taxable
General Obligation Bonds, Series 2011 F; $2,420,000 General Obligation Urban
Renewal Bonds, Series 2012H; and $7,034,000 Taxable General Obligation Refunding
Bonds will be held Monday, November 5, 2012 at 11:00 a.m. The results will be brought
to the November 5th City Council Meeting. A letter from Attorney Mark Cory detailing
information on the bond sale is attached.
Pri„
Michael C. Van Milligen
MCVM /jml
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Jennifer Larson, Budget Director
Kenneth TeKippe, Finance Director
AHLERS COONEY, P.C.
100 COURT AVENUE, SUITE 600
DES MOINES, IOWA 50309 -2231
PHONE 515 - 243 -7611
FAX: 515 -243 -2149
WWW.AHLERSLAW.COM
R. MARK CORY
rcory@ahlerslaw.com
October 25, 2012
Ms. Jenny Larson
Budget Director
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
RE: Taxable General Obligation Bonds, Series 2012F
Dear Ms. Larson:
Direct Dial:
(515)246 -0378
With this letter I am enclosing proceedings for the sale date (November 5, 2012),
covering minutes of the reception of bids and form of resolution awarding the Bonds to
the best bidder.
Sealed and electronic bids for the Bonds should be received by the Finance
Director and listed in the minutes. After a final call for sealed bids, the bids should then
be opened and the best bid recorded. Only sealed and electronic bids are permitted by the
terms of sale. No other bids should be considered. All bids should then be referred to the
Council for award of the Bonds.
Acceptance of the best bid can be made by execution of the applicable bid form.
An extra copy of the proceedings is enclosed to be completed as the original and
returned to us for our transcript of the action taken. In addition, please return copies of
the bids and particularly the accepted bid.
October 25, 2012
Page 2
Should you have any questions, please don't hesitate to contact me.
Very , ly yo A s
R. Mark Cory
RMC:dc
encl.
cc: Ken TeKippe
Tim Oswald
00897636 -1 \10422 -140
P
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of the City of Dubuque, Iowa.
Date of Meeting: November 5 , 2012.
Time of Meeting: 11:00 a.m. (Office of the Budget Director)
6:30 p.m. (City Council)
Place of Meeting: Historic Federal Building, 350 West 6th Street, Dubuque,
Iowa.
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental
body will meet at the date, time and place above set out. The tentative agenda for the
meeting is as follows:
Taxable General Obligation Bonds, Series 2012F.
• Receipt of bids.
• Resolution directing sale.
Such additional matters as are set forth on the additional � page(s) attached hereto.
(number)
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local rules of the governmental body.
AIM
City C er , City of Dubu ►r wa
November 5, 2012
The Finance Director of Dubuque, Iowa, met in the office of the Budget Director, City Hall, Dubuque, Iowa, at
11:00 o'clock a.m., on the above date, to open sealed bids received, access facsimile bids and electronic bids and
to refer the sale of the Bonds to the best and most favorable bidders for cash, subject to approval by the City
Council at 6:30 o'clock P.M. on the above date.
The following persons were present:
Jenny Larson
* * * * * * * *
This being the time and place for the opening of bids for the sale of Taxable General Obligation Bonds, Series
2012F, the meeting was opened for the receipt of bids for the bonds. The following actions were taken:
1. Sealed bids were filed and listed in the minutes while unopened, as follows:
Name & Address of Bidders:.
None
2. The Finance Director then declared the time for filing of sealed bids to be closed and that the sealed bids
be opened. The sealed bids were opened and announced.
3. Electronic bids received were accessed and announced as follows:
Name & Address of Bidders:
BOSC Inc, Menomonee Falls, WI
BMO Capital Markets, Chicago, IL
UMB Bank N.A., Kansas City, MO
Robert W. Baird & Co., Inc., , Red Bank, NJ
Raymond James & Associates Inc., Memphis, TN
Hutchinson, Shockey, Erley & Co., Chicago, IL
4. The best bid was determined to be as follows:
Name & Address of Bidder: BOSC Inc., Menomonee Falls, WI
True Interest Rate: 1.695344%
Net Interest Cost: $108,198.50
All bids were then referred to the Council for action in accordance with the Notice of Sale.
1
November 5, 2012
The City Council of the City of Dubuque, Iowa, met in regular session, in the Historic Federal Building, 350
West 6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the above date. There were present Mayor Buol, in the
chair, and the following named Council Members:
Present: Braig, Buol, Connors, Jones, Lynch, Resnick, Sutton
Absent: None
Council Member Bra i g introduced the following Resolution entitled "RESOLUTION DIRECTING
SALE OF TAXABLE GENERAL OBLIGATION BONDS, SERIES 2012F," and moved its adoption. Council
Member Jones seconded the motion to adopt. The roll was called and the vote was,
AYES:
NAYS:
Lynch, Resnick, Sutton, Braig, Buol, Connors, Jones
Whereupon, the Mayor declared the following Resolution duly adopted:
RESOLUTION NO.3 04-12
RESOLUTION DIRECTING SALE OF TAXABLE GENERAL OBLIGATION BONDS, SERIES 2012F
WHEREAS, pursuant to notice as required by law, bids have been received at public sale for the bonds
described as follows and the best bid received is determined to be the following:
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2012F:
Bidder: BOSC Inc., of Menomenie Falls, WI
the terms of said bid being:
Purchase Price: $1,033,165.94
Principal Amount: $1,035,000
True Interest Rate: 1.700829%
Net Interest Cost: $112,884.26
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA:
Section 1. That the bid for the bonds as above set out is hereby determined
received and, said bonds are hereby awarded based on said bid.
Section 2. That the statement of information for bond bidders and the form
are hereby approved and the Mayor and Clerk are authorized to execute the
Section 3. That the notice of the sale of the bonds heretofore given and all
of the sale of said bonds are hereby ratified and approved.
PASSED AND APPROVED this 5th day of November, 2012.
2
to be the best and most favorable bid
of contract for the sale of said bonds
same on behalf of the City.
acts of the Clerk done in furtherance
DL/
Mayor
KtFIJK I VI- BALL
City of Dubuque, Iowa
$3,695,000 General Obligation Bonds, Series 2012E
(Later Re -Sized to $3,640,000)
Sale Date: Monday, Novemeber 5, 2012 at 11:00 AM CST
Moody's Rating "Aa1"
Non -Bank Qualified
VINNING BIDDER
ank of America Merril Lynch- New York, NY
Bonds Due Interest Bonds Due Interest
1 -Jun Rate 1 -Jun Rate
2014 2.000% 2024 2.250%
2015 2.000% 2025 2.375%
2016 2.000% 2026 2.500%
2017 2.000% 2027 2.500%
2018 2.000% 2028 3.000%
2019 2.000% 2029 3.000%
2020 2.000% 2030 3.000%
2021 2.000% 2031 3.000%
2022 2.000% 2032 3.000%
2023 2.125%
urchase Price: 3,696,010.80
let Interest Cost: 943,057.79 True Interest Rate: 2.499079%
)THER BIDDERS
As Re -Sized (Statistics from Dated Date)
Purchase Price: 3,641,351.93
Net Interest Cost: 916,853.07 True Interest Rate: 2.487518°
:obert W. Baird & Co. Inc., Red Bank, NJ Hutchinson, Shockey, Erley & Co., Chicagor_IL
Bonds Due Interest Bonds Due Interest Bonds Due Interest Bonds Due Interest
1 -Jun Rate 1 -Jun Rate 1 -Jun Rate 1 -Jun Rate
2014 2.000% 2024 2.375% 2014 1.250% 2024 2.500%
2015 2.000% 2025 2.500% 2015 1.250% 2025 2.600%
2016 2.000% 2026 2.500% 2016 1.250% 2026 2.750%
2017 2.000% 2027 2.625% 2017 1.250% 2027 2.750%
2018 2.000% 2028 2.750% 2018 1.250% 2028
2019 2.000% 2029 2.750% 2019 1.450% 2029 3.000%
2020 2.000% 2030 2.750% 2020 1.700% 2030
2021 2.000% 2031 3.000% 2021 2.000% 2031
2022 2.000% 2032 3.000% 2022 2.150% 2032 3.100%
2023 2.250% 2023 2.400%
urchase Price: 3,663,369.85 Purchase Price: 3,649,928.25
let Interest Cost: 965,043.28 True Interest Rate: 2.575693% Net Interest Cost: 990,720.31 True Interest Rate: 2.636069°
*Box Around Interest Rates Indicates Term Bonds
Pi nprTa ff rav
VINNING BIDDER
OSC, Inc, Menomonee Falls, WI
Bonds Due Interest
1 -Jun
2015
2016.
2017
2018
urchase Price:
let Interest Cost:
Rate
1.000%
1.000%
1.250%
1.375%
1,048,228.00
108,198.50 True Interest Rate:
)THER BIDDERS
K1-'UK I UI- bALt
City of Dubuque, Iowa
$1,050,000 Taxable General Obligation Bonds, Series 2012 F
(Later Re -Sized to $1,035,000)
Sale Date: Monday, Novemeber 5, 2012 at 11:00 AM CST
Moody's Rating "Aa1"
Taxable
Bonds Due
1 -Jun
2019
2020
2021
2022
MO Capital Markets GKST, Chicago, IL
Bonds Due
1 -Jun
2015
2016
2017
2018
urchase Price:
let Interest Cost:
Interest
Rate
1.500%
1.500%
1.500%
1.500%
1,053,056.25
110,517.19 True Interest Rate:
Bonds Due
1 -Jun
2019
2020
2021
2022
;obert W. Baird & Co. Inc., Red Bank, NJ
Bonds Due
1 -Jun
2015
2016
2017
2018
urchase Price:
let Interest Cost:
Interest
Rate
2.000%
2.000%
2.000%
2.000%
1,059,095.75
120,732.25 True Interest Rate:
Bonds Due
1 -Jun
2019
2020
2021
2022
lutchinson, Shockey, Erley & Co., Chicago, IL
Bonds Due
1 -Jun
2015
2016
2017
2018
urchase Price:
let Interest Cost:
Interest Bonds Due
Rate 1 -Jun
1.000% 2019
1.000% 2020
1.200% 2021
1.500% 2022
1,043,137.50
125,775.69 True Interest Rate:
Interest
Rate
1.450%
1.750%
2.000%
2.200%
1.695344%
Interest
Rate
1.500%
1.750%
2.000%
2.250%
1.729%
Interest
Rate
2.000%
2.000%
2.000%
2.200%
1.886%
Interest
Rate
1.750%
2.000%
2.250%
2.500%
1.974%
As Re -Sized (Statistics from Dated Date)
Purchase Price: 1,033,165.94
Net Interest Cost: 107,480.76 True Interest Rate:
1.700829°
UMB Bank NA, Kansas City, MO
Bonds Due Interest
1 -Jun Rate
2015
2016
2017
2018
Purchase Price:
Net Interest Cost:
Raymond James
Bonds Due
1 -Jun
2015
2016
2017
2018
Purchase Price:
Net Interest Cost:
PinerTiferny
Bonds Due
1 -Jun
0.650% 2019
0.800% 2020
1.000% 2021
1.250% 2022
1,044,855.00
11,092.81 True Interest Rate:
Interest
Rate
1.550%
1.800%
2.100%
2.300%
1.742%
& Associates, Inc. Memphis, TN
Interest Bonds Due Interest
Rate 1 -Jun Rate
1.000% 2019 1.600%
1.000% 2020 2.000%
1.000% 2021 2.250%
1.250% 2022 2.500%
1, 042, 370.75
122,336.94 True Interest Rate: 1.921%
Ktl'UK I Ull- SALt
City of Dubuque, Iowa
$2,420,000 General Obligation Urban Renewal Bonds, Series 2012H
(Later Re -Sized to $2,385,000)
Sale Date: Monday, November 5, 2012 at 11:00 AM CST
Moody's Rating "Aa1"
Non -Bank Qualified
VINNING BIDDER
;obert W. Baird & Co. Inc., Red Bank, NJ
Bonds Due
1 -Jun
2015
2016
2017
2018
2019
2020
2021
2022
2023
urchase Price:
let Interest Cost:
Interest Bonds Due
Rate 1 -Jun
2.000% 2024
2.000% 2025
2.000% 2026
2.000% 2027
2.000% 2028
2.000% 2029
2.000% 2030
2.000% 2031
2.125% 2032
2,407,908.70
676,532.55 True Interest Rate:
)THER BIDDERS
lutchinson, Shockey, Erley & Co., Chicago, IL
Bonds Due
1 -Jun
2015
2016
2017
2018
2019
2020
2021
2022
2023
urchase Price:
let Interest Cost:
Interest Bonds Due
Rate 1 -Jun
1.000% 2024
1.000% 2025
1.250% 2026
1.400% 2027
1.400% 2028
1.650% 2029
1.850% 2030
2.100% 2031
2.250% 2032
2,338,281.70
699,473.80 True Interest Rate:
Interest
Rate
2.250%
2.375%
2.500%
2.500%
2.625%
2.750%
2.750%
3.000%
2.545706%
As Re -Sized (Statistics from Dated Date)
Purchase Price: 2,373,670.28
Net Interest Cost: 656,724.97 True Interest Rate:
2.533697°
Bank of America Merril Lynch. New York, NY
Interest Bonds Due Interest Bonds Due
Rate 1 -Jun Rath 1 -Jun
2.500% 2015 2.000% 2024
2.600% 2016 2.000% 2025
2.700% 2017 2.000% 2026
2.750% 2018 2.000% 2027
2.750% 2019 2.000% 2028
2020 2.000% 2029
2021 2.000% 2030
2022 2.000% 2031
2023 2.250% 2032
Purchase Price: 2,408,616.60
2.632808% Net Interest Cost: 707,667.93 True Interest Rate:
3.000%
Pi nprTa ffrav
Interest
Rate
2.375%
2.500%
2.625%
2.750%
3.000%
3.000%
3.000%
3.000%
3.000%
2.659920°
*Box Around Interest Rates Indicates Term Bonds
Irccrvrc i or a /Lt
City of Dubuque, Iowa
$7,340,000 Taxable General Obligation Refunding Bonds, Series 2012 I
Later Re -Sized to $7,285,000
Sale Date: Monday, Novemeber 5, 2012 at 11:00 AM CST
Moody's Rating "Aa1"
Taxable
WINNING BIDDER
BOSC, Inc, Menomonee Falls, WI
Bonds Due Interest
1 -Jun
2013
2014
2015
2016
2017
Purchase Price:
Net Interest Cost:
Rate
0.300%
1.000%
1.000%
1.000%
1.000%
7,349,672.65
328,959.45 True Interest Rate:
OTHER BIDDERS
Bonds Due
1 -Jun
2018
2019
2020
2021
BMO Capital Markets GKST, Chicago, IL
Bonds Due
1 -Jun
2013
2014
2015
2016
2017
Purchase Price:
Net Interest Cost:
Interest
Rate
1.500%
1.500%
1.500%
1.500%
1.500%
7,408,716.60
348,800.07 True Interest Rate:
Bonds Due
1 -Jun
2018
2019
2020
2021
Robert W. Baird & Co. Inc., Milwaukee, WI
Bonds Due
1 -Jun
2013
2014
2015
2016
2017
Purchase Price:
Net Interest Cost:
Interest
Rate
2.000%
2.000%
2.000%
2.000%
2.000%
7,512,146.25
365,230.42 True Interest Rate:
Bonds Due
1 -Jun
2018
2019
2020
2021
UMB Bank NA, Kansas City, MO
Bonds Due
1 -Jun
2013
2014
2015
2016
2017
Purchase Price:
Net Interest Cost:
Interest
Rate
0.450%
0.550%
0.650%
0.800%
1.000%
7,298,162.00
366,105.75 True Interest Rate:
Bonds Due
1 -Jun
2018
2019
2020
2021
D.A. Davidson & Co., Denver, CO
Bonds Due Interest
1 -Jun
2013
2014
2015
2016
2017
Purchase Price:
Net Interest Cost:
Rate
1.500%
1.500%
1.500%
1.500%
1.500%
7,344,300.85
457,264.44 True Interest Rate:
Bonds Due
1 -Jun
2018
2019
2020
2021
Interest
Rate
1.200%
1.450%
1.750%
2.200%
1.219490%
Interest
Rate
1.500%
1.500%
1.750%
2.000%
1.288105%
Interest
Rate
2.000%
2.000%
2.000%
2.000%
1.335479%
As Re -Sized (Statistics from Dated Date)
Purchase Price: 7,294,553.15
Net Interest Cost: 325,931.91 True Interest Rate:
1.219252%
FTN Financial Capital Markets, Memphis, TN
Bonds Due
1 -Jun
2013
2014
2015
2016
2017
Purchase Price:
Net Interest Cost:
Interest Bonds Due
Rate 1 -Jun
0.350% 2018
0.450% 2019
0.550% 2020
0.800% 2021
1.000%
7,310,029.15
354,878.37 True Interest Rate:
Raymond James & Associates, Inc. Memphis, TN
Bonds Due
1 -Jun
2013
2014
2015
2016
2017
Purchase Price:
Net Interest Cost:
Interest Bonds Due
Rate 1 -Jun
0.380% 2018
0.480% 2019
1.000% 2020
1.000% 2021
1.000%
7,325,720.15
367,073.59 True Interest Rate:
Hutchinson, Shockey, Erley & Co., Chicago, IL
Interest Bonds Due Interest Bonds Due
Rate 1 -Jun Rate 1 -Jun
1.250% 2013 1.500% 2018
1.550% 2014 1.500% 2019
1.800% 2015 1.500% 2020
2.200% 2016 1.500% 2021
2017 1.500%
Purchase Price: 7,376,654.10
1.362612% Net Interest Cost: 406,862.88 True Interest Rate:
Interest
Rate
1.600%
1.900%
2.100%
2.550%
1.697399%
Pi r,PrTa ffrav
Interest
Rate
1.200%
1.600%
1.900%
2.250%
1.318456%
Interest
Rate
1.250%
1.600%
2.000%
2.250%
1.362378%
Interest
Rate
1.500%
1.750%
2.000%
2.250%
1.506064%
Recent Refunding of the City of Dubuque
(1) (2) (3)
(4) (5) (6)
(7) (8) (9)
(10) (11) (12)
Origmal Actual Final
Original Actual Final
Original Actual Final
Original Actual Final
Date
Estimated Savings
Estimated Savings
Estimated Savings
Estimated Savings
Savings After fees NPV basis
Savings After fees NPV basis
Savings After fees NPV basis
Savings After fees NPV basis
Water portion Series 2012G
Parking portion Series 20121
Airport portion of Series 20121
DICW portion Series 2012I
6/1/2013
14,373 4,279 4,268
-3,533 1,537 1,528
3,273 706 702
2,274 1,831 1,821
12/1/2013
11,835 11,791 11,731
53,917 54,393 53,793
11,921 12,056 11,923
21,211 20,025 19,804
6/1/2014
11,835 6,791 6,739
- 52,148 - 50,608 - 49,770
- 13,079 -7,944 -7,812
-7,724 -9,975 -9,810
12/1/2014
9,153 9,041 8,949
46,312 47,721 46,670
10,454 10,751 10,514
14,540 13,875 13,569
6/1/2015
9,153 9,041 8,927
- 43,688 - 37,279 - 36,254
- 14,546 -9,249 -8,995
-460 -1,125 -1,094
12/1/2015
6,303 6,096 6,004
38,219 40,555 39,221
8,971 9,431 9,121
7,390 7,250 7,011
6/1/2016
6,303 11,096 10,900
- 41,781 - 34,445 - 33,126
- 11,029 -5,569 -5,355
32,390 37,250 35,823
12/1/2016
3,280 3,189 3,124
30,449 33,080 31,636
7,358 7,860 7,517
6/1/2017
3,280 13,189 12,890
- 29,551 - 16,920 - 16,091
7,358 -2,140 -2,035
12/1/2017
22,817 25,076 23,715
5,663 6,155 5,821
6/1/2018
- 22,183 -9,924 -9,333
-9,337 -3,845 -3,616
12/1/2018
15,397 16,956 15,857
4,108 4,430 4,143
6/1/2019
-9,603 -3,044 -2,831
4,108 -570 -530
12/1/2019
8,325 9,041 8,361
2,543 2,739 2,533
6/1/2020
147,805 156,041 143,500
-1,937 739 679
12/1/2020
1,130 1,130 1,033
6/1/2021
31,130 31,130 28,310
12/1/2021
6/1/2022
12/1/2022
6/1/2023
12/1/2023
6/1/2024
12/1/2024
6/1/2025
12/1/2025
6/1/2026
12/1/2026
6/1/2027
12/1/2027
6/1/2028
12/1/2028
6/1/2029
12/1/2029
6/1/2030
12/1/2030
6/1/2031
12/1/2031
6/1/2032
Totals:
75,513 74,514 73,532
160,755 232,182 216,875
48,088 57,811 53,953
69,621 69,131 67,125
aving;
.oivio
. o
0
NOTICE OF BOND
SALE
Time and Place of
Sealed Bids:'pids for
the sale of Bonds of the
City of Dubuque, State
of Iowa, will be
received at the office
of the Finance :Director,
City Hall, 50 West 13th:
Street, Dubuque, Iowa
(the "Issuer ") at 11:00
o'clock A.M., on the 5th
day of November, 2012.
The bids will then be :'
publicly opened and
referred for action to
the meeting of the City
Council in conformity
with the , terms of.
offering.
The Bonds: The
Bonds to be offered are
the following:
GENERAL OBLIGATION
BONDS, SERIES 2012E,
in the amount of
$3,695,000; to be dated
the date of delivery
TAXABLE GENERAL
OBLIGATION BONDS,
SERIES 2012F, in the
amount of $1,050,000,
to be dated the date of
delivery
GENERAL OBLIGATION
URBAN RENEWAL
BONDS, SERIES 2012H,
in the amount of
$2,420,000, to be dated
the date of delivery
TAXABLE GENERAL
OBLIGATION REFUND-
ING
` BONDS, SERIES
20121, in the amount of
$7,340,000, to be dated
the date of delivery
(together, the
"Bonds ")
Rights Reserved:
The right is reserved to
reject any or all bids,
and to waive any
irregularities as
deemed to be in the
best interests of the
public.
By order of the City
Council of the City of
Dubuque, Iowa.
Kevin S. Firnstahl
City Clerk,
City of Dubuque, Iowa
STATE OF IOWA {SS:
DUBUQUE COUNTY
CERTIFICATION OF PUBLICATION
I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa
corporation, publisher of the Telegraph Herald,a newspaper of general circulation
published in the City of Dubuque, County of Dubuque and State of Iowa; hereby
certify that the attached notice was published in said newspaper on the following
dates: October 26, 2012, and for which the charge is $18.11.
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this r•� day of �_„eg,; ..,G , 20
Notary Public in and for Dubuque County, Iowa.
a
MARY K. WESTERMEYER
Commission Number 154885
d�t�